Qualify Me Pty Ltd v Get Qualified Australia Pty Ltd (No 5) [2017] FCA 676

Qualify Me Pty Ltd v Get Qualified Australia Pty Ltd (No 5) [2017] FCA 676

The liquidators were not responsible for initiating the proceeding or the costs application, did not act unreasonably given their unfunded position and lack of legal advice, and thus should not be ordered to pay Qualify Me's costs personally. Qualify Me is entitled to have its interlocutory application costs paid by GQA in a fixed lump sum, as those costs were properly quantified and justified.

Parties
Applicant: Qualify Me Pty Ltd; First Respondent: Get Qualified Australia Pty Ltd; Second Respondent: Adam Wadi; Other (joint and Several Liquidators): Blair Pleash and Kathleen Vouris (liquidators of Get Qualified Australia Pty Ltd)
Jurisdiction
Australia
Judgment Date
20 June 2017
Procedural Posture
Costs Application (post Interlocutory) / Judgment on Costs After Interlocutory Application and Discontinuance of Cross Claim
Outcome
First respondent (GQA) to pay applicant's (Qualify Me) costs of interlocutory application in lump sum; no order as to costs between applicant and liquidators on personal liability application; interlocutory application otherwise dismissed.
Legal Topics
Personal Liability of Liquidators for Costs, Party and Party Costs, Lump Sum Costs Orders
Civil Procedure Corporate Insolvency Costs Personal Liability of Liquidators for Costs Party and Party Costs Lump Sum Costs Orders

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Parties

Qualify Me Pty Ltd

Applicant

Get Qualified Australia Pty Ltd

First Respondent

Adam Wadi

Second Respondent

Blair Pleash and Kathleen Vouris (liquidators of Get Qualified Australia Pty Ltd)

Other (joint and Several Liquidators)

Procedural Posture

Costs Application (post Interlocutory) / Judgment on Costs After Interlocutory Application and Discontinuance of Cross Claim

Legal Issues

  1. 1 Whether liquidators should be ordered to pay costs of the interlocutory application personally from 24 March 2017
  2. 2 Whether to exercise discretion to make a lump sum costs order in favour of the applicant against the company in liquidation

Ratio Decidendi

The liquidators were not responsible for initiating the proceeding or the costs application, did not act unreasonably given their unfunded position and lack of legal advice, and thus should not be ordered to pay Qualify Me's costs personally. Qualify Me is entitled to have its interlocutory application costs paid by GQA in a fixed lump sum, as those costs were properly quantified and justified.

Court Disposition

First respondent (GQA) to pay applicant's (Qualify Me) costs of interlocutory application in lump sum; no order as to costs between applicant and liquidators on personal liability application; interlocutory application otherwise dismissed.

Orders

  • The first respondent (Get Qualified Australia Pty Ltd) pay the applicant's (Qualify Me Pty Ltd) costs of the interlocutory application filed 6 December 2016, fixed at $14,838.05, pursuant to r 40.02(b) of the Federal Court Rules 2011 (Cth).
  • No order as to costs as between applicant and the liquidators of the first respondent regarding the application for personal payment of costs from 24 March 2017.